VG Liquidation, Inc. – Preference Defense Lawyer

Beginning on April 21, 2020, Thomas A. Pitta, as Liquidating Trustee of the VG Liquidating Trust began filing complaints seeking to avoid and recover certain alleged preferential and/or fraudulent transfers and and unauthorized transfers that cleared post-petition, pursuant to Sections 547, 548, 549, and/or 550 of the United States Bankruptcy Code. Approximately 35 such complaints have been filed so far.

The Liquidating Trustee seeks to avoid and recover from Defendant, or from any other person or
entity for whose benefit the transfers were made, all preferential transfers of property that occurred during the ninety (90) day period prior to the commencement of the bankruptcy proceedings of the Debtors in these cases: VG Liquidation, Inc. (f/k/a Videology, Inc.), VG MT Liquidation LLC (f/k/a Videology Media Technologies,LLC), and VG Liquidation Ltd. (f/k/a Videology Ltd.).

Procedural History:

On May 20, 2018 (the “Petition Date”), each of the Debtors commenced a voluntary case under chapter 11 of the Bankruptcy Code.

These bankruptcy cases are being jointly administered.

These adversary actions are before the Honorable John T. Dorsey.

Background, as alleged by Plaintiff:

[A]s of the Petition Date, the Debtors provided software solutions to help advertisers and media companies plan, execute, and measure ad campaigns across television and digital media, with innovations including a direct integration with Nielsen, the dominant provider of television data in the United States, as well as many other data providers, including those with global capabilities.

Common Defenses in Preference Actions

The United States Bankruptcy Code provides many affirmative defenses to preference actions, contained within Section 547(c). For example, the most common defenses that may be available to a Defendant under Section 547(c) may include:

• the transfer was a contemporaneous exchange for new value given to the debtor (i.e., the debtor received something of value in exchange for the transfer); 11 U.S.C. §547(c)(1);
• after such transfer, Defendant gave new value to or for the benefit of the debtor (i.e., the Defendant extended additional credit to the Debtor after receiving the transfer) 11 U.S.C. §547(c)(4); or
• the transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the recipient (i.e., Defendant made the transfer under ordinary business terms). 11 U.S.C. §547(c)(2).

For more information, see our page on Preference Defense Litigation: http://www.tobialaw.com/practice-areas/delaware-preference-defense-lawyer/

If you conducted business with VG Liquidation, Inc. or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed against you or your business even if not served yet, email us at info@tobialaw.com or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule an initial consultation. We can discuss the situation and share with you our initial observations at no charge.